Study On The Influential Factors Of Fair Value Accounting Policy Choice

Accounting policy choices exist in all the accounting processes from accounting affirmation, accounting measurement, accounting records to accounting reports. The process of accounting is virtually the process of making choice of accounting policy. Enterprises select different accounting policies will have different accounting information, then the information will affect stakeholders'allocation results and investment decisions, also the allocative efficiency and productive efficiency of social resources. The choices of accounting policies directly influence the quality of accounting information, the decisions of the company's stakeholders and the order of capital markets. The implementation of accounting standards in 2007 adopted fair value on a large scale,basically achieved with the international coordination of accounting standards, the onset of the world financial crisis has caused wider public concern to the fair value. So, by analyzing the problem of the accounting policy choice of listed companies will be very helpful to the theory and practice of fair value accounting.Combining the actual situation of the listed companies, basing on relevant theoretical research such as modern accounting goal theory, equity theory, agency theory , using empirical analysis as an important method, this article research the factors influencing the accounting policy choice of listed companies, in order to supply high quality useful decision-making of accounting information for users. Main contents as follows:(1) Review research of the field at home and abroad, use the definition of fair value as this article's entry point, then state analyze the characteristics of the fair value, discuss the determination methods and research the relationship with other measurement attributes of accounting. Making theory basic for bellowing empirical research, then state the basic theory of fair value measurement and accounting policy choices theory, making theory basic for bellowing empirical research. Fair value is the amount for which an asset could be exchanged, a liability settled, or an equity instrument granted could be exchanged, between knowledgeable, willing parties in an arm's length transaction. Fair value accounting choice is a process, under the present measurement attributes, according to specific management target, For selection criterion of accounting principles and methods and procedures to the qualitative and quantitative methods for determination of choose fair value.(2) Reviewed our historical changes of the fair value, make a comparison of the three stages of accounting policy ,which is first application, and disabled then resurrection, introduced the new accounting rule transformation, comparison of both old and new accounting standards and analyzed the impact for the financial report. The paper maintains that fair value measurement will exert a profound influence on the company's financial position and operating results, also the investment decision passed by the accounting information of financial reports.(3) Collect 2009 Shanghai, Shenzhen stock market 1715 listed companies as sample, study on affecting factors of the accounting policy choice of listed companies. From the whole sample and consider the specific of the industry, the type of audit opinion, the nature of an enterprise, the size of the board, the proportions of the independent directors, the size of the supervisory board, senior management salary by descriptive statistics, then using Logistic regression model to examine the correlation between Influencing Factors and the accounting policy choice of listed companies.(4) Summarized the conclusion of empirical research, and proposes policy suggestions to promote the application of fair value. The empirical analysis results shows that the accounting policy choice of listed companies is mainly influenced by the industry attributes, the controlling shareholders, ownership concentration, the size of the board ,the size of the independent directors , senior management salary, and enterprise scale. The state should pay close attention to formulate a unified fair value implementation guidance, strengthen the supervision of the stock market, further perfect the financial market, improve the corporate governance, strengthen and perfect enterprise internal control system,so as to form a sound system featuring clearly specified powers and responsibilities, mutual coordination and restraint and highly efficient operation,improve overall quality of the accountant in our country, enhance the responsibility of the certified public accountant.